FIBR CC Notes Part 2:
Guidence, afirm triple didget growth, min 54 mill this yr, see increaing rev gro going forward and margin improvment. mid yr say more on better visability, large pending contracts feel good about. signif in size and sched of deployment.
Guidance-Can affirm guidance for 2002. Triple digit growth from 2001 to 2002. Minimum $54 million. See revenue growth Q to Q going forward. See further margin improvement Q to Q. Further out, appears by mid year may be able to provide guidance based on better visibility. Number of significant pending contracts that we have high degree of confidence in to provide decent visibility by time get to mid point of year. Significant in size and predictable in appetite for deployment.
The $15,000,000 line of credit that is in progress is good news on the financing front.
re carrier trials "several opportunites we are optimistic about". we want to be in a position to fund internally, and given that we see name customers, improving backlog, we'd like to look for significant financing options in the future in terms amenable to our present shareholders.
fibr_follower - they are not getting anything back as Sorrento does not have available the legal funds.
It looks like it is going to be a restructuring - you could have been close with your repricing of options
appears it is necessary to meet the redemption request of the series a holders; terms of series a charter wisely designated where redemption funds can come from, or the redemption cannot occur.
Robertson Stevens:
How much did last Q's 20% customers buy this Q?
One went from 19% to 34% this Q
Another who did 20% did 10% this Q
If i got that right.
Flesh out guidance for 2nd half?
Significant new customers and contracts (carrier class) should be able to speak about by name next Q. Scheduling deliveries for 12 month intervals. Currently only 1 customer with such visibility.
Morgan Stanley:
What is cash burn rate?
Cash flow approx $5M. Next Q may be a bit higher than the $5-6M. Cash flow significantly improving subsequent.
RFP activity related to RBOCs?
Next wave after carrier class we want to penetrate. Sincere interest shown on part of rboc's. Upgrading sonet networks very touchy with carriers. Hope we see activity by end of year, but not expecting revenue consequence this year. Xin says product well positioned for the market.
Jeffries & Co:
Discuss uniqueness of product vs. competitors and what level of revenues is needed for breakeven, and what is pattern of shipment scheduling?
Appears to us that Q revenue slightly above $30M will achieve cash flow breakeven.
Not enough data to discuss scheduling. Seen one delay, otherwise see purchases and delivery as usual. Part of Feb was stale, but back end of this Q was very strong.
Product allows customer to do with 1 fiber what competitors require 2 fibers. Flexibility, value proposition superior to just about all competitors. Proven technology, reliable. Easy product to configure and deploy. Can be expanded gracefully. Don't need to take networks out of service to expand.
SG Cowen:
Asia-Holding up strong? Sales strategy over 12-18 mos?
Focused recently on European markets. Established Singapore office and another in China. Working with partners in Japan, Korea and Taiwan.
Dan from Robert W. Baird, now asking questions about the trials. EOM
Robert W. Baird:
How many field trials are ongoing and with whom?
Number of trials, minimum of 3. Reluctant to name names. ATT's valididation of DWDM encouraging.
How big is metro market?
RHK estimates market size of access/transport/switching in excess of $5B in 2004. Could be high as $11.
Top 3 competitors?
See Nortel,ONI regularily. Less with Ciena. SCMR more long haul.
re top 3 competitors
we see NT a lot because of legacy relationships
see Onis
do not see much overlap with Cienna
question re: sycamore
answer: they have long haul orientation
Newberger Berman:
Some series A shareholders are customers. May convert Series A to different equity.
When Terabeam revenues?
Can't comment. Look to Terabeam for info first.
Could they be top 5 in next couple Q's?
Probably not right now, but might have to answer no-comment if you ask next Q |
